Nio Stock Reaches Critical Level: Now What?

When it comes to stocks, there are certain price levels that are more important than others. And shares of NIO Inc. NIO have just reached one.

In April, the stock hit resistance when it got to the $43 level and a sell-off followed. This resistance broke in June and shares moved higher.

When this happened, many of the investors who sold their stock at $43 came to regret their decision. A number of them decide to buy their shares back, but they will only do so if they can get the same price they sold at. As a result, they place their buy orders at $43.

See Also: Nio Stock Holds Key Support, But Flashes Bearish Signal

If there are enough of these buy orders, it will form support at $43. This could prop up the stock and could even cause it to rebound.

If there isn’t enough support, the level will break and Nio could make another large move lower.